BANK of England Governor Mark Carney has said there is no need to reverse the rise in house prices.

Mr Carney made the announcement as he told MPs that officials were not considering further measures to cool the market.

He was questioned by the Treasury Select Committee after the Bank's Financial Policy Committee (FPC) announced plans to curb riskier mortgage lending.

His remarks came as official figures showed house prices in London were rising at a record annual rate of 20.1 per cent, while they were up 10.5 per cent across the UK.

Mr Carney reiterated his belief that "issues associated with housing" posed "the biggest risk over the medium term to the durability of the expansion" in the economy.

However, he said the FPC's measures, which include a new cap on high loan-to-income value loans, were an insurance policy, rather than an attempt to reverse increases.

He said: "The reason we took out insurance as opposed to trying to reverse activity is because we are in a low interest environment for where a high ratio mortgage could be appropriate."

Mr Carney said the Bank's measures were not targeting a reduction in house prices.

He said: "History shows the British people pay their mortgages but what happens if they are borrowing in high multiples is that they have to economise on everything else in order to pay their mortgages."

The Governor reiterated he did not know when rates would rise.